A rent ceiling creates a deadweight loss
A) if it is set below the equilibrium rent.
B) if it is set equal to the equilibrium rent.
C) if it set above the equilibrium rent.
D) if it decreases the taxes the government collects in the housing market.
E) never, because if it did create a deadweight loss, the government would not impose it.
A
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Fractional reserve banking
Since few Americans would ever be willing to pay more for a sandwich than for a pair of jeans,
A) for most Americans clothing is more important than food. B) for most Americans clothing is more valuable than food. C) for most Americans clothing has more monetary value than food. D) most Americans derive their values from the culture rather than biological necessities. E) most Americans have little difficulty obtaining enough to eat.
Bid-rigging is more likely when
a. auctions are for larger amounts b. auctions are frequent c. auctions are infrequent d. the auctioneer is paid on commission rather than a fixed fee
Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.
Figure 6.3Refer to Figure 6.3. Molly?s budget constraint is AB. Molly can purchase
A. none of the points along AD. B. all of the points along AC. C. none of the points along AC. D. none of the above.